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PhilaPort Special May 2021

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Page 10 of 39 and vegetable imports, and we leveraged those containers," Holt explained. When meat producers had difficulty moving exports to the West Coast, an alternative plan was formed to rail meat from the Midwest to Philadelphia, transload it into reefer containers, and load it on vessels bound for Asia. "Our flexibility, knowledge, and experience with these types of cargo — both imports and exports — allowed us to turn [the plan] on pretty quickly." Holt said brand new business could come from exports of distiller's dried grains with solubles (DDGS), a high-protein animal feed. "We've been working with three large US exporters of DDGS to ship the grains to Southeast Asia, specifically Thailand and Vietnam," he said, adding that Norfolk Southern Railway and CSX Transportation are also part of the discussions. "We're setting up new facilities for trans- loading rail to container, and we're setting up new warming sheds, because some of these products require fumigation as a condition of entry to other markets, such as Thailand and Vietnam." The combination of Midwest meat exports and DDGS moving through PhilaPort translates to a growing need for a "direct Asia service in Philly," Holt said. PhilaPort's Mahoney agreed that the port hopes to attract additional services from Asia, along with the Mediterranean and additional services from Northern Europe. He said that the port is in conversations now with the lines to gain these services. "If the 25 percent tariffs on European fruit are reduced, we could get a Mediterranean service. A new Med service was planned two years ago, but the imposition of tariffs destroyed the commercial viability of that service," Mahoney said. "It is a natural fit though. Europe does a lot of fruit, and PhilaPort is the No. 1 fruit port complex. We could also receive large volumes of meat, cheese, and alcohol, all of which are major products for us already." Meanwhile, two new liner services that call Philadelphia offer shippers more options and potentially less congestion than that associated with larger port gateways on the East Coast. "MSC's Canadian Gulf Bridge service includes three ports in Mexico, including two of the largest, Veracruz and Altamira," Holt said. Philadelphia was added to the Canadian Gulf Bridge service, while New York–New Jersey was dropped. "As the leading produce port in the US, we benefited from the American consumer's demand for fresh fruit and vegetables." A SPECIAL ADVERTISING SUPPLEMENT OF THE JOURNAL OF COMMERCE May 24 2021 | 11 PHILADELPHIA TRADE & LOGISTICS Drivers bring our critical supplies. Our food. Our medicine. And they regularly push outside most Americans' comfort zone to do it. If you have critical cargo in the northeast or need transloading, call on H&M Intermodal Services. We won't let you down because they won't let you down. For marine drayage nationally, visit HERE'S TO THE DRIVERS OF OUR ECONOMY IMC-0068_JOC_HandMad_7x4.875_MECH.indd 1 4/26/21 12:15 PM

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